“Economic, social and global issues, as well as industry dynamics, are driving change,” related Jim Carney, executive director of the National Truck Equipment Association (NTEA). “Technologies, legislation and shifts in supply and manufacturing are transforming products, services, people and processes across the industry. More than ever, fleet managers must work with their supplier partners to understand and deploy truck technologies for maximum productivity.”
Carney’s remarks at the 2009 Electric Utility Fleet Managers Conference (EUFMC) in Williamsburg, Va., along with those of Doyle Sumrall, senior director of business development at NTEA, were a perfect fit for the annual conference’s theme of “Preserving Fleet Value in Challenging Times.” Given the current economy’s impact on fleets that operate vocational vehicles and the suppliers of work trucks and equipment, their views on “The Work Truck Industry’s Changing Dynamics” were of great interest to nearly 75 fleet managers from about 50 investor-owned electric utilities in the U.S. and Canada at EUFMC this year.
Carney began by noting that new technologies can present opportunities. “But fleet managers must work with upfitter partners to understand and deploy truck technologies and develop the necessary knowledge and skills to integrate bodies and equipment for maximum productivity,” he said. “It is also important to train users to maximize technologies.”
Supplier issues were also on Carney’s agenda, including the consolidation that means fewer suppliers. “That can give truck users more bargaining power,” he stated, “but fleets should expect more standardization. Fleets must also adapt to shifts in global supply and manufacturing and prepare for a greater number of world truck chassis products by planning purchases well in advance and forming stronger supplier relationships.
“To some extent,” Carney continued, “government is also driving technology development. Fleets can expect more federal environmental and safety legislation and more demanding compliance requirements. Local and state governments will also become more active in implementing regulations.”
Fuel prices will continue to drive business decisions, noted Doyle Sumrall, so fleets must continue to control fuel costs, increase fuel efficiency and use lower-cost alternative fuels. “Government is also driving use of alternative-fuel powered trucks,” he related, “not just through mandates but in fleets as well. For example, the U.S. Postal Service used the equivalent of over 3.5 million gallons of fuel in 2007 (10.5% of its fuel use) in biodiesel (B20), CNG, E-85, electric and propane powered vehicles.”
While the General Services Administration has added hybrid and alternative-fuel trucks to purchase selection lists, Sumrall continued, there are also several transportation-specific government programs for fleets under the American Recovery and Reinvestment Act. These include:
• DOE’s Clean Cities Program, which covers projects for natural gas, propane, hybrid, PHEV, hydrogen and other vehicles, their related refueling stations, plus E85 and biodiesel refueling stations.
• EPA’s Diesel Cleanup Projects
covering retrofits, repowers, rebuilds and replacements of pre-2007 diesel engines, plus emerging technologies and financing for anti-idling technologies.
• DOE’s Vehicle Electrification
Projects covering dedicated electric vehicles, PHEVs, electrification and smart charging facilities.
“The need to meet ‘green’ mandates, and address life cycle planning concerns and budget demands, will be especially challenging for fleet managers,” Sumrall concluded.
“It will require balancing new technology purchases while remaining focused on productivity––and the need to justify the cost of the new technology.”
NTEA represents over 1,800 companies that manufacture, distribute, install, buy, sell and repair commercial trucks and equipment. For more information, visit www.ntea.com. The 57th annual EUFMC will be held June 20–23, 2010. For more information, visit www.eufmc.com.
